Kandi Receives Final Payment from Fengsheng Sale

Rhea-AI Summary

Kandi Technologies Group, Inc. (KNDI) has announced it received the final payment of RMB 308 million (approximately $47.3 million) from Geely for the sale of its 22% equity in Fengsheng Automotive Technologies. The first installment was received upon local authority approval, with the second installment expected within six months. This cash infusion strengthens Kandi's financial position, allowing it to pursue strategic opportunities without competitive conflicts following the exit from Fengsheng. The company expresses optimism about its prospects due to its financial and technological strengths.

Positive

• Final payment of RMB 308 million (approximately $47.3 million) strengthens cash position.
• Exit from Fengsheng improves flexibility to pursue market opportunities.
• Increased optimism about future prospects due to financial and technological strengths.

Negative

• None.

JINHUA, CHINA, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced that it received the final payment from the sale of its 22% equity in Fengsheng Automotive Technologies Group Co., Ltd. back to Geely.

According to the Equity Transfer Agreement, Kandi sold back its interest for RMB 308 million (approximately $47.3 million).  Kandi received 50% of the amount after the sale was approved by local Zhejiang provincial authorities and the second 50% installment within six months as stipulated in the agreement.

Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, “Receipt of this final payment on time adds to our substantial cash position, enabling us to pursue strategic market opportunities as they arise. In addition to the cash infusion, the exit from Fengsheng improves our flexibility to embrace opportunities up and down the supply chain without concerns about competitive conflicts.  We are increasingly optimistic about our prospects, given our financial and technological strengths.”

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

Follow us on Twitter: @ Kandi_Group

Contacts:

Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com

The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.com

FAQ

What was the amount received from the sale of Kandi's equity in Fengsheng?

Kandi received RMB 308 million (approximately $47.3 million) from the sale.

What impact does the final payment have on Kandi Technologies' cash position?

The final payment strengthens Kandi's cash position, enabling it to pursue strategic opportunities.

Why is Kandi optimistic about its future prospects?

Kandi is optimistic due to its strengthened financial position and technological capabilities.

What percentage of equity did Kandi sell back to Geely?

Kandi sold back its 22% equity in Fengsheng Automotive Technologies to Geely.

When is the second installment of the payment expected?

The second installment is expected within six months of the sale approval.